Pros and Cons: Third-party Insurance Vs. Comprehensive Insurance

The huge increase in the number of vehicles led to many problems. Today, we can realize the continuous increase in traffic accidents rates. It is becoming more dangerous to societies regarding loss of life, injuries, and material losses resulting from treatment expenses and other costs.

In this article, we will know more about comprehensive car insurance and third-party insurance in terms of the pros and cons of each.

Types of vehicle insurance:

As we mentioned, we have two types of car insurance. 

1-Third-party insurance:

It is called third-party insurance, where the insurance company bears compensation for damages resulting from accidents to the other party (other than the insurance owner). As for the insured, the insurance company does not bear any burdens towards the damages that occurred to him.

This type of insurance is mandatory in several countries worldwide. It covers damage to other parties if there is an accident and the fault is yours. That is, this type covers the costs of damage that occurred to others, including the costs of car repair, medical treatment, and others, but it does not cover the costs of damage that occurred to you or your car.

Advantages of third-party insurance:

  1. Compensation for accidents caused by the insured is to others, and therefore it protects the owner from paying amounts that may be high at times. Relatively, the car owner will feel safe and will prevent risks of accidents.
  1. Its installments are relatively simple and cheap usually. It is considered one of the amounts that burden the vehicle owner compared to the protection it provides and the risks it covers.
  1. Its installments are fixed and do not change in case the cost of the car changes.

Disadvantages of third party insurance

The disadvantages of this type of insurance can be limited to the limited coverage and protection it provides, as it is limited to the vehicle of others. Therefore, any damages and breakdowns that occur to the owner’s vehicle or its driver are not covered by this type of insurance if he is responsible for the accident. In this case, he must bear the costs of these breakdowns and damages.

2-Comprehensive insurance

This insurance covers all losses and damages to the insured vehicle due to an accident and is not limited to specific and named losses and damages. The insurance can cover the losses resulting from robbing the car, whether total or partial, in addition to any loss resulting from the fire. This insurance covers both his vehicle, the other vehicles and the passengers.

Advantages of comprehensive insurance 

  1. It is an insurance that offers high protection, in which the insured feels that his car is protected, even if he is responsible for the accident. Thus he will avoid paying a big amount of money to repair it.
  1. This Insurance covers a group of risks. It is not limited to car accidents. Comprehensive insurance covers the risks of theft, fire, and others.

Disadvantages of comprehensive insurance 

  1. It costs a lot. Not all car owners can pay the installments. Usually, many people pay for them through banks in the form of monthly installments.
  1. It does not cover all cars, except for the new ones. The company considers the age of each one. An old car is supposed to be quickly damaged and cause more accidents compared to a modern one.
  1. The car owner may have to resort to court to file a claim against the insurance company if the required compensation is high.

 

After reading all this, what type of car insurance policy are you willing to buy? 

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